India’s coffee exports have declined nine per cent in 2012 in line with the market expectations. The country exported 307,700 tonnes between January and December 21, 2012, against 337,715 tonnes in the previous year.
The drop in exports was mainly on account of subdued demand from major consuming markets in Europe, Asia and US, as a result of global slowdown. Bumper crop in Brazil and Vietnam also contributed to the glut in the international market resulting in demand drop.
“In the beginning of this year we had projected around 10 per cent drop in exports. The exports have moved in line with our expectations. The continued economic slump globally contributed towards the decline in demand for coffee in almost all major consuming countries,” Ramesh Rajah, president, Coffee Exporters Association of India said.
| COFFEE EXPORTS | |||
| Financial year | Quantity (MT) | Value (Rs cr) | Unit value (Rs/MT) |
| 2008-09 | 196,762 | 2,238.41 | 1,13,762 |
| 2009-10 | 196,002 | 2,070.68 | 105,645 |
| 2010-11 | 299,357 | 3,360.44 | 112,255 |
| 2011-12 | 323,656 | 4,537.90 | 140,207 |
| Source: Coffee Board of India | |||
However, there is no encouraging news in store for the exporters in 2013. Contrary to the cheerful start to 2012, when the exporters opened the year with good prices, the opening of 2013 is not encouraging for the exporters. According to the early indications, there is no positive news either, as the order book remains very thin and there are not many enquiries for the first quarter of 2013, he said.
“The global economic slowdown has turned out to be much worse than we expected. The continued slowdown and change of consumption pattern for cheap-priced coffees has resulted in demand dip for the new year,” Rajah pointed out.
According to Coffee Board of India, export of Indian coffee witnessed a drop of 9.8 per cent during the calendar year 2012 at 260,590 tonnes as against 288,958 tonnes. While the export of Arabica variety went up 8.5 per cent to 57,633 tonnes against 53,087 tonnes in the year 2011, the exports of Robusta suffered a blow. The export of Robusta variety declined 18 per cent to 156,475 tonnes as against 190,705 tonnes in 2011.
Similarly, the export of instant coffee (value-added coffee) remained flat at 93,368 tonnes against 93,643 tonnes in the year 2011.
“The coffee market is still saddled with a global glut of Arabica coffee beans this year. As a result, prices of Arabica may not see further rise from its present level of Rs 6,800 per 50 kg bag”, the Coffee Board said on its website.
Rajah said, last year the outlook was much more bullish compared to this year as we had better prices and carry over stock from the previous year. Bumper crop in Brazil and Vietnam have contributed to glut in the global markets during this year.
Crop year 2012-13 is now under way and arrival of the new crop is delayed by three weeks. It is expected to hit the market in January. The crop for the year is likely to remain more or less same as last year at 300,000 tonnes. The Coffee Board has pegged the domestic crop at 325,300 tonnes, a growth of 3.5 per cent over 2011-12.
